June ICIS Petrochemical Index rises by 3.5%

02 June 2009 22:42[Source: ICIS news]

HOUSTON (ICIS news)--The ICIS Petrochemical Index (IPEX) rose again in June to 196.33, but the 3.5% increase over May reflected a slower rate of recovery than in the previous month, when the IPEX grew by 3.7%.

Despite strong aromatics pricing and higher feedstock propylene pricing in the US and Europe during the current period, sources continued to lament weak year-over-year demand from many sectors.

Of the 12 products in the IPEX portfolio, the only decliner, globally, was polypropylene (PP), down by 0.2% overall due partly to flat values in Europe and a decline of 2.5% in Asia due to ample supply and a weak Chinese market.

Globally, chemicals price growth was led by benzene, up 17% for the period, and by toluene, which was up by 10%.

Benzene rose on higher offers and contracts prompted by rising energy prices since the beginning of the year, sources said. In the US, benzene has risen nearly 120% since January, and NYMEX crude has increased by more than 34% since April.

For the month, benzene was strongest in Europe, where prices were up by 27%, and in the US, which saw a 23% increase. In Asia, benzene prices also rose, but at a marginally improved pace of 3.5% versus 3.4% a month earlier.

Most other IPEX products grew at rates of 1-4%.

Published at the beginning of each month, the IPEX provides an independent indicator of average change in world petrochemical prices.

Dating back to January 1993, historical ICIS prices for a basket of 12 essential petrochemical grades in the US, western Europe and the northeast Asian markets have been weighted by regional nameplate capacity to generate a monthly index value.